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PowerPoint Presentation - Commission for Energy Regulation

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PowerPoint Presentation - Commission for Energy Regulation Powered By Docstoc
					    Industry Forum

       Cathy Mannion

Head of Generation and Supply

       23rd May 2002
                         Pricing Review
• Top up purchases limited leading to secondary top
  up
• Spill based on avoidable fuel costs for 350 MW and
  then IPP fuel cost
• CER issued discussion paper suggesting secondary
  top up = spill = market price =
  System Marginal Energy + (Loss of Load Probability
  * Value of Lost Load)
   – Does this price provide an appropriate/timely signal for more
     capacity to enter the market?
   – Are prices too volatile/unpredictable?
   – Does this approach “fit” with other market prices?
              Pricing Review




20 TU > PG > VIPP > TU > Spill
                        Market Review
• The Minister’s policy direction of 1999 requires CER to
  review market structure in early 2004
• CER decided to advance review to reduce market
  uncertainty
• 20th March – We issued draft terms of reference
• Some responses but no substantive changes suggested
• Scope – extensive and including areas such as:

  Obligation to supply? Economic purchasing obligation?
  Gross or net market? Calculation of market price? Prices for
  ancillary services, reactive power etc..? Inclusion of demand
  side? Dispatch rules? Network access rights?
                   Provisional Timetable
• Finalise terms of reference                May 2002
• Appoint consultants                        Q2/3 2002
• Issue background paper                     June 2002
  drawing on experience of other countries and in particular
  on system with similar characteristics (e.g. size and level of
  interconnectivity)

• Issue draft principles paper and consult    End Sept
  2002
• Public Forum & Consultations          Q4 2002
• Finalise principles paper             Dec 2002
• Detailed work programme               Dec 2002
         Eugene Coughlan

Head of Consumer and Corporate Affairs

   Commission for Energy Regulation
   All Island Study

       Keelin O’Brien

Manager, Electricity Trading
                   Background
• Commitment by Ministers to Planning on All-
  Island Basis
  • More Effective Competition
  • Increased Customer Choice
• IPA North / South Energy Studies
• DPE / DETI - Ballymascanlon - Dec 2001
     • Divergences in Markets
     • Identify Priorities
• OFREG / CER Study – May 2002
                     Compare and
                    Contrast Studies
• Market Opening
  – Northern Ireland = 1MW or .79GWh (700
    Customers)
  – Ireland = 1GWh (1,600 Customers)
• Trading
  – Single Buyer v Bi-lateral Contracts
  – Ex-post V Ex-ante
  – Constraints Costs / Firm Non-Firm Access
• Fiscal and Other Issues
  – Tax powers not Devolved in NI
  – Powers of Regulators – differ
  – Growth Rates/ Currency
             Compare and Contrast
               Studies (Contd.)
• Licences / Authorisations
  – CER / DETI
  – De-Minimus Levels
• Networks
  – Imperative - No Distortion between Generation
    Connection and UOS
  – Differences but Inconclusive as to Materiality
  – Differences in all other Respects not Material
• Metering and Data Services
  – Metering Issues
  – Change of Supplier Process Should be Same
  – Systems Options
                              Next Steps
• Estimation of Cost Benefits
   – Interim Dispatch Study / Interconnector Planning
   – Proposals for Sharing Ancillary Services
• Co-operation Between Departments / Regulators
   – Executive Body to Carry Forward Process
   – Legislative Proposals
   – Trading Review/Network Tariffs / Security Standards
• Co-Operation ESB / NIE
   – Load Profile Development
   – MDS Systems
   – Data Transfer - Common Standards
• Monitor Iberian Market
      Gas Regulation

       Dr Paul McGowan

Commission for Energy Regulation

         23rd May 2002
             Background
• EU Directive 98/30/EC
• Legislation
  – Gas (Interim) (Regulation) Act, 2002
  – Electricity Regulation Act, 1999
  – Gas Act, 1976 [as amended]
  – Gas (Amendment) Act, 1987
• 30th April 2002 – Appointed Day
  – TPA Threshold
  – Consents & Licensing
  – Etc…
         Work Scope 2002
• Consultancy Support
  – N/E/R/A
  – Slaughter & May
  – McCann Fitzgerald
  – AESL/GTL International
  – RSM Robson Rhodes
• Consultancy Programme: 9 – 12 Months
       Regulation Tasks 1/3
• Regulatory Framework – 10th June
  Consultation
• Consents Policy
  – Evaluation Framework
  – Competitions for Consents under the 1976 Act and
    Section 2(1) Orders under the 1987 Act
  – Technical Guidelines
• Gas Market Design
  – Definition of Market Operation Objectives
  – Review of the Transmission Code of Operations
  – Distribution Code
       Regulation Tasks 2/3
• Metering & Data Services
• Tariffs & Terms for access to the Pipeline
  System
  – Connection Policy
• Dispute Resolution Procedures
• Licensing of Suppliers/Pipeline
  Operators/Storage Operators
  – Interim Licences: June Target
• Unbundling and Ringfencing Arrangements
       Regulation Tasks 3/3
• Gas Capacity Statement
  – Process/Demand Forecasting
  – First Gas Capacity Statement
• Security, Continuity, Quality of Supply
• Protecting the Interests of Consumers
  – Codes of Practice/Licence Provisions
• CER Structure/Industry Levy
CER Industry Forum 23rd May 2002


        Sheenagh Rooney

            Manager
  Consumer and Renewable Affairs
                   Consumer Affairs
• CER ‘duty to protect interests of final customers’
  under S(9)(3) of ERA 1999
• Condition 11(2) of Licence to Supply requires that
  customers be informed that the CER can assist where
  unresolved complaints occur
• Licensees have own internal complaints procedures
• Unresolved network and supply complaints – 80%
  network / 20% supply (Source: Elcom)
• Forthcoming CER consultation on options for future
  arbitration of unresolved electricity complaints
  (network / supply) for all customers
• Ongoing communication by CER – quarterly bulletin,
  consumer road shows, future report on consumer
  views
                 Renewable Affairs
• Future Auction of AER energy – aid balancing / the
  promotion of competition in supply / restricted to
  promote new build

• Green accreditation – procedure for certification of
  green imports

• Green / CHP Balancing – flexible 2 year balancing
  period for new entrants – 5% margin of error
  thereafter

• All island study on renewables / CHP
                        European Renewables
                           Directive 2001
•   Target 13.2% by 2010 for consumption of renewable electricity
•   Different mechanisms of support allowed – green certs / investment
    aid / tax measures / direct price support
•   Too early for community mechanisms
•   Issues
     – Streamline administrative measures
     – Guarantee of Origin for Renewables
     – Definition of biomass
     – Issues for Gird
           • Priority Dispatch (may provide for..)
           • Publish rules re: technical adaptations renewable may require
           • Transparency in cost of connections
           • Use of system charging reflects benefits of embedded
             generation
           • Two way metering
           • Increased level of CHP and Embedded generation – take
             account of benefits in costs
                 CER / Wind Study

• Terms of Reference
   – To determine for the years 2005 / 2007 and 2010 the maximum
     level of wind generation that can be accommodated on the
     island combined power system without modifying the
     development of these systems as presently planned and in the
     context of existing operation policies
   – To estimate the cost implications of accommodating these level
     of wind penetration
   – To determine the most important constraints which prevent
     higher wind penetration
   – To evaluate the implications of removing these constraints
• Interim report on initial findings and methodology for
  public consultation in June

				
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